For a lot of people, entrepreneurs and business owners are the same. Indeed, very few even think about entrepreneur vs. business owner as a comparison because they are used interchangeably. However, the reality is pretty different.
While it’s indeed true that these two terms are closely related, they definitely do not have the same meaning. If you are confused about which category you belong to, it’s time to understand the comparison of entrepreneur vs. business owner on a deeper level.
Entrepreneur vs. Business Owner: A Brief Introduction
First things first, you have to be clear about what the two terms entail. Everyone knows the definition of a business owner. Anyone offering a product or service of use to his customers is a business owner. Business owners work for a particular target market. They look to make a profit by serving their customers.
Business owners own companies and are responsible for their smooth operations. And, of course, they benefit significantly from the profits of their business. One cannot become a business owner unless he is passionate and focused on his goal.
Yes, an entrepreneur must possess the same traits, but there’s more to this term. Typically, an entrepreneur is someone who refuses to abide by the norms. Entrepreneurs are prone to risk-taking and hence have to bear the ups and downs of their ventures with full accountability. More often than not, entrepreneurs also have limited resources and have to put their creativity to full display to manage finances so that they can make their business idea a reality.
So what does this tell you about an entrepreneur vs. business owner? It’s the approach and attitude that makes the difference.
Entrepreneur vs. Business Owner: The Differences To Know
Keep in mind that both entrepreneurs and business owners run their organizations with maximum efficiency. However, they do have some contrasting traits that set them apart. Let’s take a look at some of them.
· Entrepreneurs are Focused on Growth
A lot of business owners are content as long as their company makes a profit. They aren’t always looking to expand. If their business is manageable, they don’t consider exploring new horizons.
An entrepreneur is never satisfied with what he has. His focus is always on the growth of his company. He is looking for new markets to target, new ventures to try, and new paths to discover.
· Business Owners Have an Emotional Attachment to Their Business
It takes a lot to open a new business. Of course, business owners too want their company to flourish, but they aren’t as growth oriented. They are linked to their companies on an emotional level. Hence, they don’t even think about selling off their company in the future.
For entrepreneurs, their business is a stepping stone. Once they feel there’s nothing left to explore or expand in their current company, they are quick to move on. And that’s because their thirst for challenges is never quenched.
· Entrepreneurs are Risk Takers
You won’t find an entrepreneur who is satisfied with what his business has accomplished. Once he achieves his goal, he will start thinking about his next step. Hence, he pushes boundaries and takes risks.
Interestingly, risks in entrepreneurs aren’t always taken on a whim. Indeed, there’s a lot of deliberation behind them. Being an entrepreneur does not mean one takes risks blindly. In fact, entrepreneurs assess all potential outcomes of their decisions beforehand.
A business owner is less open to risks. And that’s because he does not want to lose his company. Therefore, he’s always reluctant to try new things or break barriers.
· Business Owners Have a Steadier Journey
Since business owners take limited risks, their journey is less turbulent. They ensure that every decision they take has minimum chances of harming their company’s future in any way. Business owners prefer taking a slow and steady route. They aren’t looking for explosive growth.
On the other hand, you have entrepreneurs who don’t mind taking a giant leap of faith now and then. These people are open to suffering setbacks because, for them, it’s the growth that matters.
· Entrepreneurs are More Technical
Business owners tend to spend their time focused on running the company. They rarely involve themselves in the technicalities. Instead, for them, running a business is all about generating maximum revenue.
Entrepreneurs are more into technical skills. They believe in using their knowledge to further their business. There’s a reason that entrepreneurs become passionate leaders. This is because they genuinely care about their niches and want to know everything about it.
· Entrepreneurs Focus on the Bigger Picture
This is a glaring factor in this comparison of entrepreneur vs. business owner. Entrepreneurs always think big. Their plans are never short-term. They don’t plan their weekly schedule. Instead, they think about where their company should be in the coming year. Their team usually handles their day-to-day affairs while they think about long-term growth.
The approach of business owners is completely different. Since they prefer to go down the slow and steady route, their plans are mostly short-term. They believe in taking one step at a time.
· It All Starts with a New Idea for Entrepreneurs
Business owners usually work on something popular among customers. They identify their target market and establish their business.
However, most entrepreneurs start their journey with a fresh idea. Even if they work on an existing idea, they give their own spin to it.
Entrepreneur vs. Business Owner: Which One Are You?
A lot of people are confused about which category they belong to. It’s imperative to think hard and decide your approach. It all comes down to your personality and how you want to handle your business.
For instance, business owners have a team to suggest their decisions. However, an entrepreneur prefers making decisions himself.
It’s about your choice. Yes, the decision can undoubtedly be a difficult one. There’s a lot of introspection required. Think about it. If you have a never-ending hunger for challenges, entrepreneurship is your calling. Those attracted to innovation inevitably find themselves tilting towards entrepreneurship. However, if you want something steady, being a business owner is just as good.